sell their goods, instead of lowering prices to get rid of them, they tend to raise prices. They try to make up for slack sales with higher prices.
Government deficit spending and monopoly pricing consequently dovetail to unleash inflation, even when production is declining. CREDIT EXPLOSION This process was already well underway in Britain in the middle 1960s. Continued hand-outs to ailing British industry combined with money poured into the armaments industry created a deepening inflationary trend.
This gives the lie to the propaganda of successive governments that wage increases cause inflation. On the contrary, wage increases merely represent the attempt by working people to maintain their standards of living in the face of an innauonary spiral The average wage of working people in 1974 was £80 a week. Today that wage stands at £110. If ALTERNATIVE The only way to offset this twin evil is by bold socialist policies. In order to help curb intlation, health and education, the labour arms budget and pour the money into socially useful areas.
- building houses, hospitals, schools and parks - would also provide jobs for the tens of thousitting idle.
At the same time, however, of living inbuilt into wage agreements. Since the Consumer Price index is "rigged", consumer price committees are needed to follow actual price increases in garages, should cover not only wages but also Social Security pensions for the old, unemployed and sick.
the statute books will be by similar mass action which will have to be that much more vigorous because of the strong